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FCA Business Interruption Insurance Test Case


Publication date:

27 May 2021

Last updated:

18 June 2021


Gavin Kealey QC, Barrister, 7KBW

In this Insurance Institute of London (IIL) property webinar, Gavin Kealey QC, Barrister, 7KBW, discussed the essential causal connection between the insured peril and the loss said to be covered by the policy.

In this landmark test case, the FCA considered that 370,000 insureds had had payments denied and argued that a composite cause had operated: COVID-19 + government regulations + the public response and insurers had disputed this, claiming it stretched causation too far. Gavin Kealey made the submission on causation for the eight insurers involved in the appeal heard by the Supreme Court.

By the end of this webinar members would have gained an insight into:

  • The general principles of causation in insurance
  • The tension or absence of tension (depending on one’s perspective) in the law between (i) the generally accepted principles of causation in insurance and (ii) the parties’ bargain as embodied in the contract of insurance
  • How two perils, one insured and another uninsured, operating independently of each other to cause a loss, may give rise to coverage even where the loss would have been caused even if the insured peril had not occurred


Duration: 57 minutes

This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.


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